Overseas property CGT - PoA paperwork & calculation issues

UnpoweredAttorney

Hoping for some insight from folk with previous experience - sorry its long! 
Im trying to help an elderly relative (uk resident) who sold a property (spain) last fy, they arent able to travel so used a previously trusted person living out there to act as PoA.  I understand this gain needs to be declared on relatives uk tax return & CGT potentially payable.

Issue 1 - despite several requests the PoA has not returned any paperwork/reciepts relating to the sale & has ignored my most recent request on behalf of relative. All we have from them is an email with various costs listed.

Issue 2 - I think the PoA has miscalculated spanish CGT, theyve listed it as being the  spanish 3% flat rate "and thats it". Property was bought long enough ago for profit to be significant (approx prices : purchase 40k, sale 110, profit minus costs 60-65K) but as far as i can tell they havent done what should have been done & presented the difference between 3% and actaul rate within 4 months. 

Any help/direction on how to best address this, settle the appropriate tax (in either location) but hopefully not end up being stung retrospectively with either double tax or fines? Relative wasnt deliberately trying to avoid tax & getting increasingly anxious about the whole thing. Many Thanks!

KathysBoy

When a non-resident sells a property in Spain the notary is required to withhold 3% of the sale price. The retention amount and the sale is reported to the AEAT (Spanish tax office) using Modelo 211, and a copy should be provided to the seller.

The seller is then required to complete and submit a Modelo 210 which details the sale and calculates the net capital gains that is incurred . You can claim costs and expenses, but you must  provide supporting documents. If the amount due is more than the 3% already paid, the difference then becomes payable in Spain.

You can find details here https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/GF00.shtml, although most this is in Spanish.

This is in English so is a little better. https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/manuales-practicos/manual-tributacion-no-residentes/numero-identificacion-publicacion.html

To be honest if I were you I would pay someone to submit it for you. Assuming that you didn’t use a professional in the sale, I would look for a local  gestoria, or ask somebody you may know locally for a recommendation. Many English residents in Spain use a gestoria to submit their tax returns.

You should also report the sale to HMRC on a self assessment return, and calculate any Capital Gain using the UK formula, BUT you can offset any tax paid in Spain. 

[Deleted User]

KathysBoy said:

When a non-resident sells a property in Spain the notary is required to withhold 3% of the sale price. The retention amount and the sale is reported to the AEAT (Spanish tax office) using Modelo 211, and a copy should be provided to the seller.

The seller is then required to complete and submit a Modelo 210 which details the sale and calculates the net capital gains that is incurred . You can claim costs and expenses, but you must  provide supporting documents. If the amount due is more than the 3% already paid, the difference then becomes payable in Spain.

You can find details here https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/GF00.shtml, although most this is in Spanish.

This is in English so is a little better. https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/manuales-practicos/manual-tributacion-no-residentes/numero-identificacion-publicacion.html

To be honest if I were you I would pay someone to submit it for you. Assuming that you didn’t use a professional in the sale, I would look for a local  gestoria, or ask somebody you may know locally for a recommendation. Many English residents in Spain use a gestoria to submit their tax returns.

You should also report the sale to HMRC on a self assessment return, and calculate any Capital Gain using the UK formula, BUT you can offset any tax paid in Spain. 

A perfect explanation. I would say that, despite being almost fluent in Spanish, I wouldn’t even consider doing this myself. Any fee is worth the stress removal.

Just a small point though - one can only offset an amount up to the amount of U.K. tax due on the gain - any excess is lost.